Top Budget Priorities for FY
'06
Massachusetts Coalition for the Homeless
1. Expand Homelessness Prevention Programs
Increase Funding for the Residential Assistance to Families in Transition Program (Line Item 7004-9316) by $2 Million.
FY’06 Funding Request: $4 million.
The administration has moved quickly to implement this new homelessness prevention program for families with children initiated by the legislature in its FY’05 budget. As of November 2004, 631 households had received critical cash assistance to preserve their existing housing situations or to secure new housing. Knowing, however, that the program’s funds are likely to be depleted mid-year, while the need clearly remains, we urge the legislature to increase funding for this program. To maximize the effectiveness of the program across all parts of the state, we recommend shifting the measuring tool used to determine income eligibility from the federal poverty level to Area Median Income (AMI). We recommend that income eligibility for the program be set at 50% AMI.
Implement a Statewide Pilot of the First Stop Early Warning Prevention Initiative.
FY’06 Funding Request: $500,000.
There has been much discussion on both a national and local level regarding the creation of an early warning system. First Stop Initiative places experienced advocates at neighborhood health centers to help consumers who are at risk of homelessness to access a range of resources, services and cash benefit programs to stabilize their housing. The goal is to reach low-income households at the first signs of a housing crisis. By placing advocates and offering housing clinics in the health center, the project acts as an early warning system that will result in earlier identification of people experiencing housing and income problems and allow for earlier intervention. The Coalition has been piloting this new early warning initiative at Codman Square Health Center in Boston. Outcome data collected through this pilot clearly shows that it is reaching people earlier in their crisis allowing for more successful interventions. The Coalition urges the legislature to provide the funds to expand this pilot initiative. Expansion will allow these prevention services to be provided in 5 health centers serving low income communities in 4 regions of the state. This will make it possible to more fully test the effectiveness of a heath center based, early warning homeless prevention system.
2. Protect and Improve the Income Support Program for Low Income Elderly and Disabled Households to Help Them Avoid Homelessness
Provide a Cost of Living Increase to Recipients of the Emergency Aid to the Elderly, Disabled and Children program (EAEDC) (Line item 4408-1000).
FY’06 Funding Required: $6.8 Million in Increased Funding.
EAEDC is the state’s income support program of last resort. It provides monthly cash assistance and medical benefits to approximately 17,000 very low-income people who are unable to work. Everyone on EAEDC, either by virtue of their age or disability, has been found to be unable to support themselves through work. To be eligible for EAEDC benefits, people must be destitute --- having less than $303 in monthly income and less than $250 in assets. For many of these individuals, their EAEDC grant is the only thing preventing them from becoming homeless and ending up in shelter. The benefits provided to EAEDC recipients are extremely limited and have become more meager over time. The EAEDC grant amount has not been increased since 1988. During this time, the costs of purchasing housing, food, clothing and other basic needs have increased dramatically. (In fact, to keep pace with inflation, the EAEDC grant would need to be increased by $184 to $487/month.) Benefits provided to disabled and elderly individuals through the Federal SSI program and the state Veterans Services program have increased substantially during this time frame to reflect cost of living increases. A 10% increase in the monthly benefit amount would provide most recipients with an extra $30.30 a month ($364/year).
3. Improve Access to Shelter for Families in Need
Restore the Income Eligibility Limit for Family Shelter to 130% of the Federal Poverty Line and Provide Adequate Funding in the Emergency Assistance Account (EA) (Line item 4402-2120) to Provide Shelter to All Eligible Families.
FY’06 Funding Request: A Total of $77.6 Million for the EA Program
Prior to the FY’03 budget, the income eligibility for emergency assistance family shelter was 130% of the federal poverty line ($24,500/year for a family of four). Due to budget constraints, the legislature dropped the income cut off for EA to 100% of poverty ($18,800/year for family of four). Since there are only 54 spaces in the entire Commonwealth for families who do not qualify for state-funded shelter, these working poor parents have few if any options for finding a safe haven for their children. The resulting instability threatens the parents’ jobs and jeopardizes their children’s health and safety. Given the drop in the number of families in emergency shelter and the savings resulting from this decline, the Coalition urges the legislature to take the lead in restoring the income limit for the EA program to 130% of the federal poverty line. Based on the number of over-income families in emergency shelter when the reduced income limits took effect, and information contained in tracking reports provided by DTA, the Coalition estimates that this change will cost $4 million.
4. Maintain and Expand the State’s Commitment to Affordable Housing for Extremely Low Income Households:
Restore $20 Million in Funding to the Massachusetts Rental Voucher Program (Line item 7004-9024).
FY’06 Funding Request: $44.2 million.
This increase would stop the loss of housing units for extremely low income people and restore those units already lost with previous budget cuts. It would also allow much-needed improvements to the program, ensuring that no voucher holder pays more than 40% of their income towards their rent.For more information call 781 595-7570 x16